Jan 6, 2012 10:48 PM

Oil execs: restrictions are coming too fast

"We don't have a problem with complying." Lawrence Svedson says, "it's just sometimes we don't know what we're supposed to comply with."

Offshore oil companies say they're losing thousands of barrels a day and they're blaming government red tape.

Some of the region's biggest names in offshore drilling met with Congressman Charles Boustany to talk about loosening some of the government's regulations.

Between 2011 and the projections for 2012, the United States will spend around $34-billion a year on oil. The problem? That money is going everywhere but here.

"You're talking about 800-thousand barrels a day of production that this country is going to have to get from overseas and potentially hostile countries," Svedson said.

Svedson is the Operations Manager for Marlin Energy, based right here in Lafayette.

Between the oil spill, the new permitting process, increased regulations, and even more rules hitting the books, he says the industry is losing 84-million barrels of oil every day.

"It's difficult for the industry to get its arms around everything all at one time," he said about the new rules.

"The regulators here on the Gulf Coast are afraid to make decisions." Congressman Charles Boustany says, "they don't want to get slapped on the wrist by their higher-ups or Washington so it creates a stand still on all of this."

Congressman Charles Boustany is one of the lawmakers trying to cut through all that red tape. Industry executives met with him to lay it all out on the table: what's working and what's hurting.

Even then, Boustany has to convince regulators to cut the industry some slack.

"A lot of these regulations are a lot of paperwork reporting without adding to safety." Boustany says, "we need clarification, and get a reality check on these regulations."



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